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A Canadian pharmaceutical company, CanPharm, receives a large order from a German distributor. They are worried about the Canadian Dollar strengthening against the Euro in
A Canadian pharmaceutical company, CanPharm, receives a large order from a German distributor. They are worried about the Canadian Dollar strengthening against the Euro in the next six months. Which of the following could CanPharm use to hedge its foreign exchange risk? Question 15Answer a. Enter into a currency futures contract to sell Euros b. Invest in a Euro-denominated bond c. Purchase Canadian Dollar put options d. Agree to a dynamic currency conversion at the point of saleh policy could the government enact? Question 10Answer a. Implement a price floor for domestically produced grain b. Engage in a currency devaluation to make exports cheaper c. Provide tax credits for farmers who reduce their grain production d. Introduce a tariff-rate quota on grain imports
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